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Database Compatibility and Replication

Our production databases and replication databases are running on SQL Server 2008. Recently a table column type is changed from VARCAHR(100) to VARCHAR(MAX). Replication failed showing the following error:

Column OtherInformation in object rAccounts contains type VarCharMax, which is not supported in the target server version, SQL Server 2000.

It is found that the DB compatibility level was set at 80 on all databases; it was modified to compatibility level 100 using the command: